Home Buying in 85302>Question Details

Sam, Home Buyer in Phoenix, AZ

Can I apply a portion of the IRS first time buyer credit as part of the down payment?

Asked by Sam, Phoenix, AZ Mon Jan 26, 2009

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7
HI Sam,

I need to revise my answer, but it may be a bit too late.

You are now allowed to use your potential tax credit for being a first time buyer as part of your down payment and/or closing costs. However, you cannot use in inplace of the required amount you need, but in addition to it. Also, in order to do this, you must go through a non profit organization (NPO) to administer it. And it's actually a loan....interest free, but still a loan. The NPO may charge you an administration fee and other misc fees but they would be rather inexpensive. If the NPO loans you $8000, but you actually only get $6000 from the gov't, you still have to pay back to the NPO, the full $8000.
Besides all this, I'm not aware of any NPO's in the Phoenix area administering this program.

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PAUL WELDEN
HomeSmart
480-241-0081
Buyer's Agent Realtor
0 votes Thank Flag Link Thu Sep 3, 2009
Sorry Sam, you are not able to do this. Due to you not even qualifying until you purchase a home. That is if you are what the government is saying is a "First time home buyer" I would recommend talking to your realtor or your tax advisor, just to see if there are any unseen factors in qualifying.

Steve Schexneider
The Schexneider Group
623-414-3388
If you have any other questions or concern about Real Estate, Let me know.
0 votes Thank Flag Link Thu Sep 3, 2009
Hi Sam,

No, you cannot use the tax credit that you MAY qualify for AFTER you purchase a home for your down payment which is required in order to purchase it. However, your down payment can be given to you as a gift from friends, family, church, etc and I know of some organizations to go to for down payment assistance.

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PAUL WELDEN
Buyer's Agent
HomeSmart
0 votes Thank Flag Link Mon Jan 26, 2009
Sam,

You will recieve it after you close the loan.

Please contact a lender for more details.

Feel free to contact me with any other questions
0 votes Thank Flag Link Mon Jan 26, 2009
From this web page

http://www.federalhousingtaxcredit.com/
"Participating in the tax credit program is easy. You claim the tax credit on your federal income tax return. No other applications or forms are required. No pre-approval is necessary; however, prospective home buyers will want to be sure they qualify for the credit under the income limits and first-time home buyer tests."

You can't use it as a down payment because you don't receive the credit until after you purchase a home.
For more info consult the above website or google federal housing tax credit
0 votes Thank Flag Link Mon Jan 26, 2009
p.s. Sam, if you'd like a referral to a local, reputable, experienced lender, I'd be happy to refer you to one. Just let me know.

...randy
0 votes Thank Flag Link Mon Jan 26, 2009
Hi Sam!

Unfortunately, you may NOT apply it to down part of the transaction. It's not a buyer credit, it's a buyer TAX credit, and it comes with a few strings. But it's still a great incentive for first time buyers. You should really discuss this with your Loan Officer, who can consult with you on your other options, i case you're short on for down payment funds.

All the best!

...randy
0 votes Thank Flag Link Mon Jan 26, 2009
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